Self-employed retirement plans in Olivette, MO. The freedom of running your own business in Olivette, MO is one of the great things about being self-employed. But that freedom can come with limited stability, especially in when it comes to saving for retirement, employer-sponsored plans aren't an option. Only 13% of self-employed people have a workplace retirement plan, but many would be wise to explore what plans are available. In addition to a more comfortable retirement, partnering with a financial advisor to get started and maintain your self-employed retirement plan in Olivette, MO offers tax benefits that can help you improve your bottom line.
Not many financial advisory and retirement planning firms will understand the needs of the self-employed and small business owners more than Correct Capital. Our founder's father was a small business owner himself (you can learn more about our story on our website). We have a deep understanding that your business and retirement aspirations go beyond spreadsheets and percentages, and we are devoted to providing personalized plans that reflect where you are and where you want to go. Continue reading to read more about your self-employed retirement plan options in Olivette, MO, or call Correct Capital at 877-930-4015 or contact us online to speak to a small business financial advisor at your convenience.
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What Self-Employed Retirement Plans Are There?
There are a few different retirement savings options available for self-employed individuals, each with its own set of advantages and considerations. A Olivette, MO financial advisor can help you understand the pros and cons of each option and choose that helps both your short- and long-term goals. Typically, your self-employed retirement plan options in Olivette, MO include:
Traditional or Roth IRA
Plan Overview: IRAs, or Individual Retirement Arrangements, are investment accounts that offer specific tax advantages. In a traditional IRA, deposits are typically tax-deductible, and any gains on investments grow tax-deferred, but distributions in retirement are subject to income tax. On the other hand, Roth IRA deposits are made with after-tax income, but you pay no taxes on withdrawals or investment gains. In both a traditional an a Roth IRA, distributions are penalty-free as long as you are at least 59½.
Eligibility: While many retirement plans, such as 401(k)s, are tied to employment, traditional and Roth IRAs can be set up by anyone with an earned income.
Contribution Limits: For 2023, the maximum yearly contributions for IRAs are $6,500, or $7,500 if you're 50 or older.
Simplified Employee Pension Plan (SEP IRA)
Plan Overview: A Simplified Employee Pension (SEP) IRA is a retirement plan that allows self-employed individuals to contribute a share of of their annual income from self-employment. As a self-employed individual, your contributions are limited to the amount already contributed by you (the employer), which cannot exceed 25%. If you have employees, you would have to contribute the same amount for them as you do for yourself. You may choose to contribute either a predetermined fixed dollar amount or a proportion of annual income to employee accounts. SEP IRAs may be a good self-employed retirement plan if your business experiences periods of variable income. SEP IRAs don't have the costly startup or administrative fees other retirement plans do.
SEPs work like traditional IRAs, where payments are made with money you've yet to pay taxes on and withdrawals are taxed as income.
Eligibility: Any employer, including the self-employed, can set up a SEP.
Contribution Limits: Contribution limits for employees in a SEP IRA are whichever is the least out of:
- 25% of compensation, or
- $66,000
For self-employed people, the amount eligible to be contributed is based on a special calculation.
Solo 401(k)
Plan Overview: A Solo 401(k) plan, also known as an Individual 401(k) or one-participant 401(k) plan, is a self-employed retirement plan for businesses with no employees or who only employ a spouse. Solo 401(k)s function in the same same way as employer-sponsored 401(k) plans, and you can make contributions as both an employer or employee with pre-tax money. This offers greater potential for savings than SEPs or IRAs, however the possibility of greater retirement savings is often offset by more limited investment options. In a one-participant 401(k) plan, you can make either traditional or Roth deferrals, which each enjoy the same tax benefits as their IRA contribution counterparts.
Eligibility: Only self-employed individuals and their spouses can establish and contribute to a solo 401(k).
Contribution Limits: As a self-employed individual with a solo 401(k) plan, you can make two types of contributions:
- Elective deferrals (as an employee) of a maximum of 100% of your earned income from self-employment, up to the annual contribution limit. In 2023, those limits are $22,500, or $30,000 if you are 50 or older.
- Employer profit-sharing contributions (as an employer) which cannot exceed a maximum of 25% of your net self-employment income, which is your net profit minus half of your self-employment tax and the elective deferrals you made.
On an annual basis, contributions cannot exceed $66,000, or $73,500 if you're over age 50 (in 2023).
Individual Defined Benefit Plan
Plan Overview: A defined benefit plan is a retirement plan that offers a a fixed benefit to self-employed individuals after they've left the workforce. As opposed to 401(k)s or IRAs, a defined benefit plan doesn't oscillate based on investment gains, but allows self-employed individuals to have an exact dollar figure as their income in retirement. This plan is ideal for high-earning self-employed individuals who want to save a a significant sum for retirement and are willing to add substantial contributions. Contributions are tax deferred and contributions are taxed at your income level in retirement.
Eligibility: Any self-employed individual who runs a business with no employees besides the owner or has less than five employees can establish an individual defined benefit plan, but it's typically not a great idea unless you're over 50 and earn at least $250,000 a year. Those interested in defined benefit plans tend to be:
- Partners or owners who desire to save more than $66,000 (or $73,500 over age 50)
- Companies already contributing 3-4% who are willing to contribute more
- Companies who have demonstrated consistent profit patterns
- Partners or owners over age 40 who want to make up for earlier years when they didn't save as much
Contribution Limits: The contribution limit must be decided by an actuary who calculates for your income, age, and retirement goals. Contribution limits are adjusted each year.
Why You Need a Financial Advisor for Your Self-Employed Retirement Plan in Olivette, MO
A financial advisor in Olivette, MO specialized in self-employed retirement plans can be an invaluable resource for self-employed individuals. They have the expertise to help you navigate the intricacies of retirement planning and develop a customized plan that acts as a roadmap through your financial future. A financial advisor will assess your financial situation, understand your risk tolerance, and help you make smart decisions for yourself, both as employer and future retiree. Part of what we do for you includes:
- Help you choose a plan that best fits your needs and goals
- Tailor the plan to your needs even further
- Adopt a written plan that follows all IRS guidelines
- Arrange a trust plan for assets
- Create a record keeping system
- Help you understand the plan's terms
- Monitor and adjust your plan as needed
- Offer continued financial education and support into and through retirement
- Maximize your retirement income by maximizing your social security benefits
Self-Employed Retirement Plans in Olivette, MO: Correct Capital's Process
Olivette, MO business owners who don't want to invest the time, interest, and skill set to manage their own self-employed retirement plan can become stressed when looking at their options. At Correct Capital, our retirement consultants handle the lion's share of your retirement planning on your behalf, and attempt to make meeting the golden years of your dreams as simple as we possibly can. We can help you get set up with your self-employed retirement plan in four simple steps:
- Schedule a Call — It only takes 20 minutes for a member of our advisor team to know if we're suitable for you and your business. This brief introduction lets us get a feel for what you're looking for with no major time investment on your part.
- Gather Information — If we seem like a good fit, we'll request more info, including how many employees you have (if any), your current finances, and your retirement goals. This allows us to put together a custom plan based entirely on type of advising you need.
- Review Your Plan — Once we've compiled your plan, we'll meet with you and discuss the details of your plan to ensure you understand it.
- Implementation and Monitoring — Once we've started to move forward, we'll put everything in place so your savings can start growing immediately. As long as we work together, we'll keep you up-to-date with how things are going and monitor your plan to ensure it stays suited to your needs.
Our financial advisors and retirement consultants are fiduciary advisors who are legally and ethically obligated to do what's in your best interest. We pride ourselves in providing straightforward communication and high-quality service to assist you attain your self-employed retirement goals.
Other services we offer in Olivette, MO include:

Call Correct Capital for Your Olivette, MO Self-Employed Retirement Plan
Your business isn't simply an enterprise to you, and your Olivette, MO financial advisors need to offer more than merely sound financial advice. Correct Capital takes pride in getting to know our clients and what makes them and their business tick to deliver personalized self-employed retirement plans. We offer all our Olivette, MO clients the same I.O.U. promise: all of the advice we give you will be independent, objective, and unbiased. To get started on your self-employment retirement plan in Olivette, MO, call Correct Capital today at 877-930-4015 or fill out our online form.